Digital Realty Trust, Inc. (DLR) vs SBA Communications Corporation (SBAC)

Digital Realty Trust, Inc. and SBA Communications Corporation are both Reit Specialty companies. Digital Realty Trust, Inc. is the larger, with a market value of $66.9B against $17.6B — 3.8× the size. SBA Communications Corporation trades at the lower P/E: 17.8× against 82.3×. Digital Realty Trust, Inc. grew revenue faster over the last twelve months: 17.4% against 5.36%. SBA Communications Corporation has the higher net margin (34.5% vs 11.2%) and the higher return on invested capital (11.0% vs 0.07%). Both pay a dividend; Digital Realty Trust, Inc. yields more (3.32% vs 1.59%). Across the 22 metrics below, SBA Communications Corporation leads on 14 and Digital Realty Trust, Inc. on 8.

Valuation

Metric DLR SBAC Reit Specialty median
P/E 82.31 17.85 26.27
P/S 9.34 6.14 5.86
P/B 2.32 n/m 2.19
Price to free cash flow 17.18 13.09 14.62
EV/EBITDA 38.79 17.55 16.22
EV/Sales 11.83 10.45 8.93
Earnings yield 1.21% 5.60% 3.43%
Free cash flow yield 5.82% 7.64% 5.37%

Profitability

Metric DLR SBAC Reit Specialty median
Gross margin 57.08% 75.18% 67.43%
Operating margin 0.79% 47.65% 21.38%
Net margin 11.20% 34.51% 16.14%
Free cash flow margin 54.36% 46.89% 31.07%
Return on equity 3.04% (20.71%) 4.76%
Return on assets 1.47% 8.80% 3.29%
Return on invested capital 0.07% 11.04% 4.19%

Growth

Metric DLR SBAC Reit Specialty median
Revenue growth (TTM) 17.39% 5.36% 5.36%
EPS growth (last fiscal year) 122.36% 41.21% —
Revenue growth, 5-year CAGR 9.38% 6.21% 6.70%
Net income growth, 5-year CAGR 36.93% 112.87% 0.00%

Health

Metric DLR SBAC Reit Specialty median
Debt to equity 0.67 (2.75) 0.62
Current ratio 1.06 0.17 0.70
Net debt to EBITDA 5.84 7.52 4.47

Dividend

Metric DLR SBAC Reit Specialty median
Dividend yield 3.32% 1.59% 3.88%
Payout ratio 3.84 0.67 1.14

Size

Metric DLR SBAC Reit Specialty median
Market cap 66.89b 17.62b 8.48b

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